Big Bear Real Estate Blog

Home Prices Rise For 5th Straight Month

-Israel Barden

While this sounds like good news, prices are still down by almost 4% for the year. Real estate is local and stats in Big Bear Lake, CA are much different than those nation wide. While prices are not declining any where close to what they were in years past, they are still on a slight decline. I have noticed that the homes I am selling today, however, are almost the exact same quality as the homes I sold a year ago. With prices and interest rates at all time lows, it is a great time to at least take a look at buying a home in Big Bear Lake. Please don't hesitate to contact us with any questions or to schedule a time to look at property.

 

NEW YORK (CNNMoney) -- Home prices continued a winning streak in August, the fifth straight month of price gains, but remain lower on a year-over-year basis.

A gauge of home prices featuring 20 major cities, the S&P/Case Shiller index, reported Tuesday that prices rose 0.2% in August but were still down 3.8% year over year.

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"Even though the [year-over-year] rates are improving, national home prices are still below where they were a year ago," said David Blitzer, a spokesman for S&P.

Overall, the market is treading water and there doesn't seem to be any reason to suspect that's going to change soon.

"As long as the economy remains weak, foreclosures are still a problem and lending standards stay stringent, we're not going to see much movement in home prices," said Mike Larson, a real estate analyst for Weiss Research.

"You just haven't gotten yet the rocket fuel needed to send housing soaring again," he said.

Among individual metro areas, Washington saw the biggest gain -- 1.6% in August. Detroit and Chicago were close behind at 1.4%. In the past 12 months, Washington prices have gone up 0.3%. In Detroit prices were up 2.4% since August 2010, more than any other area.

The Atlanta metro area recorded the steepest decline, down 2.4% for the month. Year-over-year prices were off 6.3%. Minneapolis home prices recorded the worst 12-month drop of 8.5%.

The home price report comes on the heels of changes in the Home Affordable Refinance Program (HARP) announced Monday by the Obama administration. The changes will enable many homeowners to refinance high-interest mortgages more easily, making their monthly payments more affordable. The plan should enable some to avoid default.

Ed Mermelstein, a New York-based real estate attorney, broker and developer, doubts that the HARP changes will have much impact on home prices or sales.

"The economy and jobs have to come back. That's what's going to help the housing market," he said.

Larson pointed out that even if they work as planned, HARP's main focus is helping existing homeowners stay in their homes; it won't spur new sales.

Newport said he thinks that housing market weakness will continue improving.

How to rescue the housing market: foreclosures

"The key reason is that more distressed homes are coming onto the market and will be selling," he said. "That tends to drag home prices down."

Fiserv, which provides real estate financial analytics to industry, is projecting a further home price decline of 3.6% through the end of June 2012.

If that forecast comes true, it would mean home prices will plumb a new, post-bubble bottom over the next nine months, down 34% from the mid-2006 peak.

Big Bear Lake, Ca Bank Owned Spotlight

  This cabin is located in Fox Farm at 42487 Balboa Lane and is listed by Tyler Wood of Coldwell Banker The Time Wood Group. While the cabin itself is in pretty good shape, what really set it apart is the 8,250 square foot lot it sits on. There are also some good views off of the back deck and back windows. With three bedrooms, two baths and two decks, this would be a great vacation cabin that is centrally located. Please contact us at infobigbearreo@gmail.com for information on this cabin or any other listing in the Big Bear Valley.

Troubled Homes Hanging Over U.S. Housing Market Drop

Any good news is welcome in this economy. It is my belief that once the bank owned inventory dries up, we will start to see recovery. Keep in mind all real estate is local and conditions in Big Bear Lake, CA will be much different than the rest of Southern California.

-Izzy Barden

Troubled homes hanging over U.S. housing market drop

September 27, 2011 | 12:22pm

Call it a sliver of a silver lining for America's beaten-down housing market: The inventory of troubled U.S. homes not yet listed for sale is diminishing.

Homes in foreclosure -- or headed into foreclosure -- are being sold at a fast enough clip to chip away at the so called "shadow inventory" that hangs over the U.S. market, Santa Ana data provider CoreLogic reported Tuesday. Shadow inventory at the end of July was down to 1.6 million units, representing a five-month supply of homes.

That means that there are 1.6 million homes in the pipeline not listed for sale. This is down from 1.9 million units, a six-month supply, from about a year ago.

"The steady improvement in the shadow inventory is a positive development for the housing market," CoreLogic Chief Economist Mark Gleming said. "However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time."

The company derives the estimate for shadow supply, or pending supply, by taking the number of so-called distressed properties not listed on any real estate listing services. It considers distressed properties to be those that are either bank-owned or delinquent by three-plus months.

Call it a sliver of a silver lining for America's beaten-down housing market: The inventory of troubled U.S. homes not yet listed for sale is diminishing.

Homes in foreclosure -- or headed into foreclosure -- are being sold at a fast enough clip to chip away at the so called "shadow inventory" that hangs over the U.S. market, Santa Ana data provider CoreLogic reported Tuesday. Shadow inventory at the end of July was down to 1.6 million units, representing a five-month supply of homes.

That means that there are 1.6 million homes in the pipeline not listed for sale. This is down from 1.9 million units, a six-month supply, from about a year ago.

"The steady improvement in the shadow inventory is a positive development for the housing market," CoreLogic Chief Economist Mark Gleming said. "However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time."

The company derives the estimate for shadow supply, or pending supply, by taking the number of so-called distressed properties not listed on any real estate listing services. It considers distressed properties to be those that are either bank-owned or delinquent by three-plus months.

Short Sales on the Rise in Big Bear Lake

-Izzy Barden

What really struck me in this article was the fact that 25% of home sales in California were short sales. This is a far cry from a few years ago when it was almost impossible to get one done. Here in Big Bear Lake, Ca, I used to have a heck of a time with these a few years ago. Lately, I have been closing almost every one I deal with. If you are a home owner in Big Bear Lake in a short sale situation, please give me a call to see how I can help.

 

 

Number of short sales on the rise

 

By Julie Schmit, USA TODAY

Short sales are increasing as a percentage of home sales in many states, helping some neighborhoods and homeowners avoid the more devastating impacts of foreclosures.

Short sales — when lenders allow financially strapped
borrowers to sell homes for less than their unpaid mortgage — accounted for 12%
of home sales nationwide in the second quarter. That's up from 10% in the same
period last year, says researcher RealtyTrac.

The increases were sharper in some states, including
California, Nevada, Michigan, Georgia and Colorado, the data show.

In Colorado, short sales were 17% of all sales in the
second quarter, up from 10% a year earlier. In California, they made up 25% of
sales, vs. 18%.

Bank of America, the largest home mortgage servicer, expects to
complete more than 100,000 short sales this year — more than double what it did
in 2009, the bank says.

Wells Fargo Senior Vice President J.K. Huey says short
sales have been "steady to slightly" up in recent months, partly because there
are fewer bank-owned houses for sale in some markets, and that has forced buyers
to pursue more short-sale properties.

Short-sale homes, which often remain occupied until sold,
tend to retain values better than those that go through foreclosure. That helps
values of neighboring homes.

In the second quarter, short-sale homes sold at a 21%
discount to non-foreclosure homes, while bank-owned homes went at a 40%
discount, RealtyTrac says. Short sales may also reduce losses for loan owners
because they avoid full foreclosure costs. Borrowers may qualify for new
mortgages sooner after a short sale than after a foreclosure.

"Short sales are a very positive solution," says BofA Vice
President Dave Sunlin.

Short sales peaked at 16% of the market in early 2009,
RealtyTrac says. Realtors say there should be more short sales and that they
should get done faster.

"We lose buyers constantly because short sales take too
long," says Beth Peerce, president of the California Association of Realtors.
Short sales completed in the second quarter took 245 days, on average,
RealtyTrac says. In a June survey, 77% of California Realtors called short sales
difficult or extremely difficult; 15% said clients were foreclosed on while
pursuing short sales.

Many short-sale efforts fail because homeowners aren't
eligible because they can still make payments, or purchase offers are too low,
says Wells Fargo's Huey. Loan owners may not agree on sale prices, either, she
says. In most states, lenders can try to recoup short-sale losses from
homeowners unless balances are forgiven. At BofA, Sunlin says balances are
forgiven more than half the time.

More Short Sale News

- Israel Barden

I received this letter today from C.A.R. President Beth Peerce. It seems that while Short Sales are still very difficult to get through, they may be getting a little easier. Anything that makes it easier for us, real estate professionals, to help you, home owners, is a good thing. There are already so many hoops to jump through, one less is a welcome relief. I was also very happy to see that the rule that requires lenders who accept a short sale must consider the debt paid in full, has been extended. This will allow home owners who must do a short sale the chance to wipe the slate clean and start over.

If anybody reading this has any questions regarding Short Sales , Foreclosures, REO's, and Bank Owned Property in Big Bear Lake, Ca please don't hesitate to contact us. We are the best at helping buyer's get great deals on distressed properties or helping home owners in trouble do a short sale. Anyhow, here is a portion of the letter.

August 12, 2011

Dear Israel,

Good news for members who work with short sales. Last month, the Federal Trade Commission (FTC) announced that it will not enforce most provisions of its Mortgage Assistance Relief Services (MARS) Rule against real estate brokers and agents who assist financially distressed consumers in obtaining short sales from their lenders or servicers. The stay on enforcement means that these real estate professionals will not have to make several disclosures required by the rule that, in the context of assisting with short sales, could be misleading or confuse consumers.

The stay applies only to real estate professionals who: 1) are licensed and in good standing under state licensing requirements; 2) comply with state laws governing the practices of real estate professionals; and 3) assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes. The stay exempts real estate professionals who meet these requirements from the obligation to make disclosures and from the ban on collecting advance fees. These professionals, however, remain subject to the rule’s ban on misrepresentations. The FTC will, however, continue to enforce the MARS Rule as to all other providers of mortgage assistance relief services, and also as against real estate professionals doing loan modifications or other types of mortgage assistance relief services. For more information.

In another piece of short-sale-related good news, REALTORS® scored a major victory on July 15, when Gov. Jerry Brown signed SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed-upon short-sale payment as payment in full of the outstanding balance of all loans, effective immediately. Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short-sale payment as full payment for the outstanding balance of the loan, but the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

For those of you who work in short sales, you’re probably not surprised that short sales haven’t gotten any easier, despite assurances by lenders to improve their processes. A June survey of REALTORS® found that more than three-fourths of members characterized closing a short-sale transaction as “difficult” or “extremely difficult,” up from 70 percent in December 2010, when members were first surveyed. Members continued to cite communication issues as the most frequent obstacle in working with lenders and servicers during the short-sale process. These communication issues include lenders’ slow response time to a short-sale package (cited by 66 percent), poor communication with lender representatives (cited by 55 percent) and repeated requests for documentation (cited by 51 percent).

C.A.R. is continuing to press lenders and industry regulators for improvements to the process. Just this week, C.A.R. sent letters to officials at Bank of America, Wells Fargo, JP Morgan Chase, and Citibank with a list of specific “asks” on how to improve the process. Also, in late July, C.A.R. Treasurer Don Faught hosted a news conference in Fresno to highlight the issue. The news conference featured Fresno REALTOR® Patrick Prince, who has been working on a short sale on behalf of his client for the past two years. His client is on his third short-sale offer and faces foreclosure if the current offer falls through. See the news conference video.

Home Prices Rise, But Still Down From Last Year

Keep in mind that all real estate is local. Big Bear real estate differs significantly from the rest of San Bernardino County and even differs vastly from neighborhood to neighborhood. All the more reason to use a local expert when considering a purchase up here.

-Izzy

June home prices rise 0.7% from May but fall 6.8% from June 2010







By Alejandro Lazo,
Los Angeles Times

August 4,
2011

U.S. home prices rose 0.7% in June from May, according
to a home price index released Wednesday, although some of that increase is
probably the result of seasonal variations.

The home price index, which
includes so-called distressed properties, fell by 6.8% in June when compared
with the same month last year, according to Santa Ana research firm
CoreLogic.

Excluding foreclosures and other distressed
properties, prices were up 1.5% in June over May. They fell 1.1% when compared
with June 2010. Distressed sales include foreclosure properties as well as short
sales, a transaction in which the bank allows a property to be sold for less
than the outstanding debt on the property.

"While there is a consistent
and sustained seasonal improvement in prices over the last three months, prices
are lower than a year ago due to the decline in prices after the expiration of
the tax credit last year," CoreLogic Chief Economist Mark Fleming
said.

The most recent Standard & Poor's/Case-Shiller index of prices
in 20 major metropolitan areas showed a 1% increase in May compared with April
but a 4.5% decline from May 2010. The Case-Shiller index is probably the most
widely followed home-price gauge, but many economists and analysts also look to
the CoreLogic home price index as an indicator of where the housing market is
headed.

alejandro.lazo@latimes.com

Home Loan Modifications Hard To Get!

As long as the government is not doing enough to help home owners in trouble, the foreclosure crisis will remain.-Izzy Barden

Home loan modification hard to get, report says

 

		Download story podcast

 

 

09:47 PM PDT on Wednesday, July 13, 2011

 

 

 

 

California homeowners continue to have trouble getting home loan modifications that stick under the Obama Administration's Home Affordable Mortgage Program, according to a report released Tuesday by the California Reinvestment Coalition, a consumer advocacy organization whose members provide foreclosure counseling.

 

"The findings of the report suggest that modifications are still hard to come by, and that servicers have not corrected many of the problems that have led to investigations of foreclosure abuses," the coalition wrote in summarizing its findings after it reviewed data the Treasury made public earlier this year and its own latest survey of nonprofit housing counselors.

 

Among the highlights of its report:

Of 568,630 borrowers who have requested loan modifications, 46 percent were denied immediately, 23 percent received a permanent mortgage modification, and a third of applicants were stuck in trial modifications or had their modifications cancelled.

 

Principal reductions are nearly impossible to receive. In Los Angeles and Fresno only 5 percent of loan modifications included some degree of principal forgiveness.

 

94 percent of housing counselors reported that homeowners are losing their homes to foreclosure while still in negotiations with their servicers for loan modifications.

 

Much of the data released from Treasury was incomplete or inadequate for true transparency.

 

Regular folk might think that owners of big, expensive homes who are most behind on their mortgage payments and owe a ton of money to lenders would be among the first that banks would evict, sending their houses to a trustee sale.

 

But Sean OToole, founder and chief executive of ForeclosureRadar.com, an online marketer of foreclosed real estate, in a blog reported his firm conducted a study that shows banks are taking longer to foreclose on higher balance loans where losses are larger and on loans for houses where they hold both the first and second mortgages.

 

O'Toole said he had figured banks would randomly foreclose on houses, with their primary aim to discourage borrowers from thinking they could live in their homes for free for years on end. But he said an in-depth study of bank foreclosures showed that "this game of chance is not completely random" and banks are seeking to delay digesting their largest losses. Under new accounting rules, they don't have to report the loss on a failed mortgage until the underlying property is sold in foreclosure.

 

"The truth is that the larger the loan balance you have, the more upside down you are in the home, and the bigger the loss for the lender, the better your chances are of not being foreclosed on for a very long time," writes O'Toole.

 

Reach Leslie Berkman at 951-368-9423 or lberkman@PE.com

Good News For Short Sale Owners

Short Sale Soundoff: BofA to accept back-up offers on short sale listings
Bank of America announced this week it will accept back-up offers on short sales and will allow the back-up offer to take over if the first buyer does not complete the transaction, without requiring the process to start again.

Under this new guidance, agents will no longer have to initiate a new short sale in Equator if the original buyer walks away from the transaction. Instead, the agent can continue with the original transaction in Equator and work with the same short sale specialist. The file will remain open and the paperwork that has been submitted will remain active. However, the buyer’s qualification and the offer price will need to be reviewed again if a back-up offer is used.

This new process applies only if there’s an available back-up offer when the original buyer does not follow through with the transaction. If a back-up offer is not ready to be submitted, the short sale will be declined. In that case, agents should return to marketing the property and initiate a new short sale in Equator once another offer is received.

In December, C.A.R. leadership met with representatives of Bank of America and asked the lender to accept back-up offers without starting the process over again. C.A.R. also has raised this issue with Fannie Mae, Freddie Mac, and Wells Fargo, and hopes they will follow Bank of America’s lead with this process.

Lakefront Short Sale

It's summer time and the lake is overflowing with water.  Lakefronts are in high demand and attracting a lot of calls from interested buyers.  Everyone is looking for a deal and a motivated seller. 

While lakefronts always have their own market, this is especially true in today's market.  99% of the lakefront owners are not in trouble.  Unlike most other types of homes in Big Bear there are not a bunch of different bank owned and "short sale" lakefront properties to choose from.  This, along with a full lake, keeps the prices on these high demand homes high.  In fact in the local MLS there is only one lakefront that is a bank owned or "short sale" listing. 

     



561 Cienega!!  This "short sale" lakefront property sits in the Big Bear West area of the valley facing Metcalf Bay.  Metcalf Bay is home to Pleasure Point and Holloways Marina as well as the two local cable parks for wake-boarding.  It is a shallow but large bay with beautiful views of the National Forest.  A large part of the bay is undeveloped land which adds to the setting.

The home is not huge, 1358 sq. ft. but a perfect size for a second home in the mountains.  It was built in 1983 and can use some upgrades but does have a nice floor plan and a decent size lot (9730 SF).  The home was originally listed at $699,900 but was reduced to $629,900 on July 1st.  The home is already on a rental program and we can get you the rental history if you are interested.  If you can get this home at the right price, with a little work it can be just the vacation home you have been looking for.

Contact us at infobigbearreo@gmail.com for additional info on this or any other property in the Big Bear Valley.

When To Ignore Real Estate Market Reports

I just read this on Inman News. Thought I would share!

When to ignore real estate market reports

Focus on what you can control

By David Fletcher, Thursday, July 7, 2011.

Inman News™

It doesn't happen very often, but I am offering something today that will help all of us improve our attitude about the economy. It's not as bad as we have been led to believe. I have the numbers to back it up.

You will see why I am so excited about what I have discovered. After all these years, my degree in economics is finally paying off.

I am about ready to quit reading monthly housing reports. Instead, I plan to focus on listing and selling homes. I am asking my readers to join me in this movement.

It's a big step, because it means I will have to quit complaining and worrying and go to work, which no one should be expected to do cold turkey.

That's why we should start reading market news only in part. The key is to focus on today's numbers, not the trends. We are salespeople. We don't make things.

I understand why companies that make appliances, Sheetrock and carpet would care. After all, they have to plan and make projections. We don't. We sell homes.

Our long-range plan is a pile of short-range ones, ranging from the next phone call to the next email or text. We are real estate agents. We don't plan. We are first responders.

The secret is to focus solely on this year's numbers. Do not read or heed the comparisons to last year or projections for next year. They do not matter to you.

Try it. It will change your entire outlook.

The Census Bureau reported last month that the seasonally adjusted annual sales pace for new-home construction stood at 319,000 homes in May. But what does that mean? Is it great news or bad news?

"I can't tell without comparing them to last year's numbers," say the purists, most of whom are just waiting to spew some high-sounding, emotionally debilitating analysis around an office filled with commission salespeople.

We live in the moment. Next year's projections don't make our house payment or fund this summer's vacation. Our attitude -- not the market's altitude -- is what makes the difference to us. That's why we need to purposely protect what we see and what we think.

Last year's number can cause your attitude to harden, and next year's numbers can be discouraging. Fortunately, neither comparison matters.

Let's take it further:

New-home real estate agents make about one sale for every 10 prospects who register in their sales offices without a broker (I am being conservative).

If 319,000 new homes are going to be sold in 2011, that equation means that about 3.19 million people will shop new homes this year! I don't know what your sales-to-prospect ratio is, but annualized sales for resale homes are projected to be in the neighborhood of 4.81 million homes sold this year.

The secret is to not compare this year's numbers with last year's or next year's projections. They do not matter. We are commission-based sales agents.

Numbers tell us all kinds of things about out business.

There are about 1 million Realtors, so that means there will 4.8 resale homes sold per agent, based on projections -- and the National Association of Realtors expects the median price of a resale home to be about $168,800 this year.

Since you are not average, because you don't worry about what you cannot control, you stay focused on what makes you money: listing and selling real estate.

Here is an example taken from a blog post that lists 12 months' worth of sales for three ZIP codes in the Pittsburgh, Pa., area:

Existing-homes sold: 1,080, for an average price of $132,000. New homes sold: 94, for an average price of $303,000. I have no idea how these numbers compare to 2010, and what could I do about it if I did? Let's assume that sales are down 10 percent, or whatever percent you want to use. So?

You may find yourself in a conversation where the economy is being discussed, and a cloud of hopelessness hangs over the conversation.

I always wait for the opportunity to ask this question: "So, what do you think we can do about it?" And there the conversation turns to sports or politics. It's true. We cannot do one thing about last year, next year or even the inventory.

But there is one thing we can do. We can quit making excuses and believing that "nobody is buying." The numbers prove us wrong.

People in your market are buying. The good news is that you can do something about it: Start prospecting harder and smarter, and watch your own local market share grow.

David Fletcher has been a Florida real estate condominium and new-home broker for more than 30 years. He has been the broker of record for 70 new-home and condominium communities. He offers podcast coaching services for general agents, broker-owners, homebuilders and developers through his website at www.newhomesniche.com. You may contact him at davidf@newhomesniche.com.

5 Great Big Bear Bank Owned Properties

Looking for a second home in the mountains?  Check out these foreclosed properties currently on the market.

 

 
  

• 195 Imperial-*Located in the eastern valley town of Sugarloaf, this log style newer construction has a great setting. Lots of trees and a secluded feeling that is hard to find in this price range. This property has been reduced $60K since it was first listed and is listed close to 50% off what it sold for in 2007. It is a great value and worth checking out even if you haven't considered the Sugarloaf area.
• 204 Gilroy-This cabin needs some work but the price is right. A larger lot and nicer area (Shay Meadows, a great Big Bear City neighborhood) than most properties in this price range. Would be a great project for someone with basic knowledge of upgrading properties. Some new flooring and paint and this could be a great little starter cabin.
• 1359 Flintridge-Beautiful log home in Moonridge. Prototypical log cabin in the mountains. Rustic with space for the whole gang. Property sold for OVER $600K in 2007. This a great value and a great home. That's hard to find in this market and this property should be on every-ones list that is looking in this price range.
• 41664 Mc Whinney-Walking distance to Snow Summit Ski Resort and less than five minutes to the lake. Great vacation rental potential. Wood floors and nice tongue and groove ceiling. Needs a little TLC but nothing major. Nice chalet style mountain ski cabin.
• 811 Wabash-Another Sugarloaf cabin with a great setting. Whats going on here? A 12,500 sq. ft. lot in Sugarloaf? A few doors down from the National Forest and hiking. This cabin has everything you need in a mountain cabin, even a detached garage. This property was worth twice as much a few years ago. Needs a little upgrading but well worth the effort for this classic gambrel cabin.

If you need anymore info on these or any other properties in the Big Bear area, feel free to contact us at infobigbearreao@gmail.com.  We will be happy to help out in any way we can.

*Click links to view additional pictures and additional info on properties.

 

 

Beware of Seller

 
-Israel Barden

It is a well-known fact that it is a buyer’s market. Due to high inventory and low prices, buyers can usually count on being in the driver’s seat. But this is not always the case. There are many situations in which a seller will be difficult to work with or actually be in control of the transaction. If you are a buyer and run into any of the following scenarios, be warned that control may have shifted.

1. 1.       The home you are interested in is new to the market. If a home has only been listed for less than a month and it is priced well, the seller may not be inclined to consider anything that is not close to full price. In many instances, the seller will feel like they need to give their price enough time to see if it works. It can be very frustrating if the home is overpriced but a perfect fit for the buyer. As a buyer you never want to over pay but it can be very stressful waiting for a price reduction, all the while hoping somebody else doesn't come along willing to pay the high price.
2. 2.       The home has been on the market for a long time without any price reductions. This is a sure sign that the seller is convinced his property is priced right and he is willing to sit on it as long as it takes to get it sold. This is common in instances where the seller owns the property outright and is not burdened with monthly mortgage payments. In some cases, the seller is simply delusional and refuses to see what his home is really worth. These sellers are very difficult to deal with for both the buyer and the sellers Realtor.
3. 3.       Your first offer is met with either no counter or a very low counter. If you make a bid on a property and the seller refuses to even respond, chances are they are not ready to come down very much off the price. Of course, if your first offer was ridiculously low, the blame lies with you. I am talking about an offer that is not less than 15% off of the asking price. If you make an offer within 10% of the listing price and they don’t respond or only come down a very small amount, you can be sure you are dealing with a seller prepared to drive a hard bargain. It is up to you whether you want to continue or start looking elsewhere.
4. 4.       Bank Owned listings are very difficult to lowball. You would think it would be the opposite, but it’s not. In many cases, the banks price the properties to sell and because they are already priced low, they will not come down very much off the price. Even if an REO property is overpriced, the banks would rather just wait a month or two and then lower the price than take anything much below 5% of the asking price. I have had personal experience where I presented the same offer every month, for four months in a row, before the bank finally accepted it. Since Bank Owned properties are usually priced fairly well, you can get a great deal most of the time.
5. 5.       Keep in mind, if you manage to get into escrow in any of these situations, the seller will most likely be very uncooperative when it comes to making repairs. In almost every instance I have been involved in, the seller will not want to make any repairs or help out in any way. They usually feel like they are giving the property away and refuse to pay anything to get the home in better shape. This is not always the case, but it something as a buyer you need to be aware of.

One strategy I have seen be fairly successful in these situations is to make a good offer and then walk away if the seller is not willing to bend. In many cases I have had the listing agent call after a week or so to see if my buyers were still interested. Oftentimes, the seller will not get another offer right away and will start to second guess themselves and start to think that maybe they should have not been so hasty in rejecting the offer. In many cases, the first offer is the best offer and the longer a home remains on the market, the staler it becomes. The most important thing for a buyer looking for a good deal is to be able to walk away from something that does not benefit them. If you are too eager, you will play right into the seller’s hands.

Appraisal Issue's Today

I just got done reading this article and thought it would be a good idea to post it on bigbearreos.com for the benefit of our readers. Appraisal's being done by incompetent appraisers is a huge problem in real estate toda, especially in Big Bear which is a very unique market. If your lender is not fighting to use a local appraiser up here, there are bound to be problems. I, personally, have seen appraisers undervalue a property by $100,000 because they don't understand the area. The worst part is, once they screw it up, they will never admit they are wrong and rectify the problem. Basically, you have to switch lenders and start the whole process over again.

-Israel Barden

 

By Kenneth R. Harney

April 17, 2011

Reporting From Washington—

When you pay $450 to $550 for an appraisal on a home purchase or refinancing, do you assume that all or most of the money is going to the appraiser who comes to the house and performs the valuation?

That's logical, but probably not correct. Despite Federal Reserve regulations that took effect April 1 requiring lenders to pay appraisers fair fees, growing numbers of them say they are still being offered $200 to $250 — even as low as $134 — for work that gets billed to consumers at $450 and higher.

Last year's Dodd-Frank financial reform law mandated that appraisers receive fees that are "customary and reasonable" for their local market areas, yet the largest national appraisal organization — the 25,000-member Appraisal Institute — says that is not happening.

"The average fees across the country today are … nowhere near reasonable or customary" in most markets, says Leslie Sellers, a former president of the group.

Who's getting the difference between what consumers are billed and appraisers are paid? Management companies that connect lenders with local appraisers take a percentage for their services, but often lenders turn appraisals into a profit center of their own.

Should you care? Absolutely, for several reasons:

•Accurate appraisals are in your interest as a consumer. They can be deal-breakers if they're lowballed. But performed competently, they are accurate measures of your equity when you refinance or seek a second mortgage.

•Most experienced independent appraisers refuse to work for $200 to $250 because they can't pay their overhead at these rates. Less-experienced appraisers who sometimes have to travel long distances from their home markets tend to be more willing to work for the lower amounts.

Tom Kirchmeyer, president of Kirchmeyer & Associates Inc., an independent appraisal management company based in Buffalo, N.Y., with 8,000 affiliated appraisers around the country, says consumers often have no idea what they're really paying for because "there's no transparency" in the process. Kirchmeyer favors mandatory disclosure of how much the appraiser is receiving and how much is going to the appraisal management company that arranged the assignment. So does Richard Hagar of American Home Appraisals in Seattle, who says major lenders who own or are affiliated with appraisal management companies oppose it because they know that if the financial facts are disclosed, "consumers are going to riot."

In a hypothetical example, say the appraiser receives $250 and the management company receives $100, how can the lender, which is charging $500 for "appraisal services" on the HUD-1 standard settlement sheet, justify the $150 difference?

It can't, said Gary Crabtree, head of Affiliated Appraisers in Bakersfield. Worse yet, he says, employing "subprime" appraisers for low fees also often leads to lowballed valuations that are harmful to homeowners and buyers.

As a recent example, Crabtree says an unhappy homeowner showed him a valuation performed by a low-cost appraiser hired by the appraisal management affiliate of a large national bank. The house, located next to a country club, was 4,000 square feet and the owner had just spent $250,000 in renovations on the property.

Crabtree, who refuses to do appraisals for the low fees paid by the bank's affiliate, said the house should have been valued at around $600,000. But the appraiser hired for the assignment valued it at just $320,000, using distressed sales and properties outside the area as comparables.

How is this happening when Congress clearly mandated higher "customary and reasonable" fees? Appraisers say much of the blame goes to the Federal Reserve, which created a giant loophole for lenders and management companies that wanted to keep playing lowball games with fees. The Fed rule allows them to consider their own low payments in their calculation of what is "customary and reasonable" — a concept that was never part of the Dodd-Frank legislation.

The Appraisal Institute's Sellers says his group and others are seeking to persuade the Fed to tighten its regulations. But in the meantime, consumers should demand transparency: Of my $500 appraisal fee, who got what? And why?

kenharney@earthlink.net

Distributed by Washington Post Writers Group.

Copyright © 2011, Los Angeles Times

How To Be A Champion For Your Client

 
- Israel Barden

Early this week I had the pleasure of meeting a great couple who were looking for a new buyer’s agent in my area. They had been working with a different Realtor for almost a year and had not had any success in purchasing a vacation home in Big Bear. As I listened to their story, it became more and more evident that they had been using somebody who was not versed in the art of being a superior agent for their client’s. Many realtors seem to think that all there is to representing a buyer is getting them in the car and opening the front door of the listing for them. They don’t do the things that they need to do to insure their client is represented in a quality manner. In order to clarify my statements, I am going to list what I feel are the five most important traits of a fantastic buyer’s agent.

1. 1.       Listen carefully to what your client’s have to say to you. You are the expert and they are depending on you to find them the home that best fits their needs. If you don’t take everything they say into account, you will waste hours of their time, showing them properties they are never going to buy. When I took the couple out I mentioned above, the Wife said to me “ Wow, Izzy, we have seen more good properties in one day with you than we did in a year with the other guy!” All because I stopped talking and listened to what was being said to me.

 

1. 2.       Know your inventory. This is the most important part of your job. Every buyer in the world is online and looking at all the listings every day. Many times, they will see a property before you do. Mainly because you are playing with your kids after work while they are scanning the web looking at everything for sale. Redfin, Zillow, Trulia, etc  are able to pull the listings off of the MLS where home buyers can see them. In order to have better knowledge than your clients, you need to get off your butt and actually go out and look at the properties in person. The pictures usually don’t tell the whole story, and if you can fill in the blanks, you have gone a long way in proving your worth. If you know the five best deals in each price range, you are on your way to being a major asset to your client’s.

 

1. 3.       Understand your market. Are home values in a particular neighborhood going up or down? Have any homes nearby sold recently? If so, what did they sell for? Are there more or less homes for sale than other areas? If so, why? Are there any issues with noise or the road being busy? In short, you need to know your market to the utmost of your ability. How can you tell a buyer a house is a good deal or not if you don’t know what is going on in that market? You can’t.

 

1. 4.       Be proactive. Study all applicable MLS’s every day. Make sure you are aware of anything that could interest your client and get them that information ASAP. If something looks especially good, jump in your car and drive out to see it. Take your camera or video camera with you. Get your buyer the information so they can move quickly if they need too. The great deals don’t last long and an hour delay can be the difference between your client getting a solid buy or being left out in the cold.

 

1. 5.       Sharpen your negotiating skills. Once you have found your clients a home they want to buy, it is up to you to get them the best price possible. This doesn’t mean you just take 20% off the price and go from there. In many cases, you need to have enough market savvy to properly advise your clients what to do. If a home is already priced to sell and is garnering a great deal of interest, coming in low could be the worst thing you could possibly do. You need to be able to tell your clients the truth of the situation and help them the write the best offer possible to get them the home. If you are not good at the rest of the list, you will not be good at this.

 

The world of real estate is filled with agent’s who have cars and electronic key boxes that can open doors. They often have lots of little letters next to their names and pictures of themselves holding dogs.  Many of them have been in business for years and can manufacture cheerful banter. They can write an offer and fax it over to another office. Anybody can do these simple tasks. It is the Realtor who takes the time to perfect his craft and put in the work to be excellent that you should pursue. Don’t be pulled in by the glamour shot taken at the mall or the fancy business card. Ask some questions and make sure you feel confident the person you are talking to can do a great job representing you. It’s important.

 

Big Bear Bank Owned Home Tours of the Week

This week we are featuring two bank owned properties listed under $100K.  Both are very good deals and have nice settings.

 

1057 Pine Lane

Listed by Andrea Lassak, this 2 bedroom 1.5 bath cabin is a great deal.  It sold for over $200K in 2006 and just needs a little work to be a very nice property.  SItting on a 7300+ sq. ft lot in the "nice part" of Erwin Lake.  It is very tough to find a property like this for under $100K. 

 

249 Highland Lane

Listed by Linda Ford, this Sugarloaf cabin is a must see for anyone looking under $80K.  It is on a 4000 sq. ft. lot and is almost 1000 sq. ft..  It also has an extra half bath upstairs which is a great feature for a cabin with upstairs bedrooms.  The property needs some upgrades but is in pretty good shape for this price range.

 

If you would like more information on these cabins or any other property for sale in Big Bear, please don't hesitate to shoot us an email at infobigbearreo@gmail.com.

Big Bear REO Groups Listings of the Week

Hi everyone. Thanks for visiting www.bigbearreos.com. This week we have two favorites. 1554 Monte Vista in Baldwin Lake and 875 B lane in Erwin lake. The one in Erwin Lake is not a bank owned, but it is priced like one. We don't discriminate against good deals here:)

 

1554 Monte Vista

Listed by Tom Benson at Sotheby's,this cabin is a great bargain. It is a two bed, two bath cabin located in the woods on the East side of town. At 1,156 square feet on a 6,740 square foot lot, this log style cabin is a can't miss at only $84,500.

 

875 B Lane

This cabin is listed by Steve Hirschler at Coldwell Banker in Big Bear Lake. I was very impressed by the cabiny feel of this little Gem in Erwin Lake. The lot is very clean and well taken care of and the inside exudes old school Big Bear charm with every wall covered in knotty pine. It is 1,122 square feet on a 4,620 square foot lot withtwo bedrooms and one bathroom. At $109,900, this will not last long.

If you would like more information on these cabins or any other property for sale in Big Bear, please don't hesitate to shoot us an email at infobigbearreo@gmail.com.

Have Your Ducks in a Row

 
- Israel Barden

Believe it or not, the real estate market in Big Bear is very competitive at this time.  Like every market, there are good deals and there are bad deals. If you are in the majority of buyers who are looking for a great deal, you need to have all your ducks in a row before you will have any chance of success. If you take the time to make sure you have everything in order you will have an excellent chance of beating out anybody else who has not done the same.

1. Make sure you are preapproved before you start seriously looking.  When you make an offer, having a preapproval letter gives you instant credibility and a definite advantage over a buyer who doesn’t have one. Most banks won’t even look at an offer on a bank owned listing if the buyer is not preapproved.  Most importantly, it lets you know exactly how much you can spend and what that credit will cost you.
2. Find a good local Realtor you trust. This one is right up there with the preapproval letter. A local Realtor who knows and watches the market is an invaluable asset in your search for the right property. There are many out of area agents who will try to tell you that they can do just as good of a job as a local Realtor. If anybody tells you that, turn around and walk away because they are not being truthful. I study this market every day, all day long and it is all I can do to keep on top of things. There is no possible way somebody who does not service this area can even do half of good as a job as somebody who is a local expert. A local Realtor watches the market and can let you know the second a property that matches your needs becomes available.
3. Time is of the essence. When a great deal hits the market, it is imperative that you are ready to snatch it up ASAP. Sun Tsu said “The acme of skill is to win a battle without fighting.” This is especially true in real estate. If you can make a great offer and get it accepted before another buyer has a chance, you have just saved yourself a great deal of money. Nobody wins in a price war.
4. Do your homework! 90% of buyers start their search on the internet, and you should too. Going on line and studying the listings in the area you want to buy is a great idea. It not only gives you an idea of what is available, it also allows the ability to get a good grasp of the local market. Once you see what things are selling for and what is actually selling, you will become an informed buyer and better able to make a good decision.

There are always stories about how somebody, somewhere, got lucky and landed the deal of the century. I am a big believer in making your own luck. By being prepared and doing your homework, you will be amazed at how lucky you can get. I would love the opportunity to earn your business and put my local knowledge to work for you. I can be reached at izzy.barden@gmail.com or 909-273-8980.

Bank Owned Lakefront in Big Bear Lake

 

 

Thanks to the recent storms Big Bear Lake is full to the brim and it should be a great summer to enjoy the lake.  If you have been looking at lakefronts, a new bank owned lakefront listing just hit the market. 

Located on Gilner Point in Big Bear Lake Central, this property faces south and has views of the not only the lake but the National Forest as well.  At over 6000 square feet, according to tax records, this property has potential to be a great mountain retreat.  Listed at under $200 a square foot, the value is also there. 

Click here for more details. Or email in at infobigbearreo@gmail.com

 

   


 

*Listing courtesy of Linda Rigg, PREMIER PROPERTIES SOTHEBY'S INT'L

Big Bear Bank Owned Homes of the Week 12/13/10

40203 Guinan Lane

Big Bear Lake, CA 92315

$249,900  3 Bed, 2 Bath, 1582 SF

 

 

 

*Listing courtesy of Keller Williams

Central Big Bear Lake location for this newer construction Fannie Mae owned property.  Log style with a 2 car attached garage.  Open kitchen, vaulted ceilings and more. 

312 Pineview Dr.

Big Bear City, CA 92314

$139,900  2 bed, 2 bath, 1080 SF

*Listing courtesy of Atlantic & Pacific Real Estate

Very clean Big Bear City property.  Less than five minutes to the lake and ski resorts.  Upgraded kitchen with granite counter tops and stainless steel appliances.  Fenced yard and plenty of parking.

The good ones go quick...

If you are looking for a good deal on a Big Bear property, contact us at infobigbearreo@gmail.com and we can help you find the right one.  In this market it is imperative to have a proactive and knowledgeable agent on your side.  We would appreciate the chance to earn your business. 

First Offer, Best Offer

 

-Israel Barden

When it comes time to negotiate, most folks are conditioned to believe that there are immutable rules that must be followed. What immediately comes to mind is a merchant’s stall in Morocco where the buyer and seller smoke a hookah together and banter back and forth until an agreement is made.  The seller always starts high and the buyer always counters low. Then the seller comes down a little and the buyer comes up a little until they reach an amiable agreement that benefits both sides. The buyer leaves with his new rug feeling like he got the deal of the century, while the seller chuckles to himself about the rube that overspent on a rug he bought at wholesale. In today’s real estate market, it is not that simple.

As a matter of fact, this kind of thinking can have very negative consequences in today’s market.  It seems like almost every buyer I work with starts out with this mentality and it is very hard to get them to change their way of thinking. Even when a property is priced perfectly, most clients have this idea that they need to start low or they won’t be giving themselves the opportunity to make the best deal. They don’t want to beak the sacred laws governing the whole process of coming to an agreement. In many cases, this is the wrong approach entirely. You have to take into account the consequences of not acting quickly to wrap up a property you really want to buy. By coming in too low, you will actually cost yourself money. By not putting your best foot forward, you are giving another buyer the opportunity to put in an offer and force a best and final situation. Even worse, if your initial offer was weak and your competitors offer is strong, they may just discount your offer entirely and choose to deal directly with the other buyer. Even though you are willing to go higher, you might not get another shot.

In order to be sure you will get a fighting chance, you need to write an offer knowing that your first offer may be your only shot at buying the property. I always tell my clients to make sure their first offer is something that has a chance of being accepted. If the house you want to buy is priced correctly and is a good deal, a full price offer is always a great way to go. You can wrap the house up right away and take any other buyers out of the equation. I can’t begin to tell you how many times I have had buyer’s try to cut a couple of grand off a house they really wanted to buy, only to end up having to spend thousands of dollars over the list price because they didn’t listen to me. It is even worse when they lose the house entirely to another buyer because the other buyer came in strong and didn’t try to nickel and dime the seller.  If you want to buy a house that nobody else is remotely interested in, forget everything you have just read. If you want to buy a property that is well priced and will probably garner a great deal of interest, remember that, sometimes, your first offer should be your best offer.

Big Bear REO Video Blog

This is a blog I put together about why I think the next couple of months are going to be great for buyer's of REO properties in Big Bear.

 

Big Bear REO Homes of the Week 8/13/10

488 Ashwood Dr.

Big Bear City, CA 92314

 

2 bedroom, 1 bath 900 sf bank owned cabin.  Vaulted ceilings, new interior paint and new flooring throughout.  Very clean for a foreclosure.   

Located on the end of a cul de sac in a very quiet Big Bear City neighborhood.  Large 9000+ sf lot with lots of trees and a great setting.  Large private deck with access to the back yard. 

Only five minutes to the ski resorts and even closer to the lake.  Listed at $189,900.

42873 Monterey St.

Big Bear Lake, CA 92315

 

*Listing courtesy of Tom Benson PREMIER PROPERTIES SOTHEBY'S INT'L

Hard to beat this Moonridge value.  2 bedroom, 1 bath 768 sf.  Sits on a 4500+ sf lot.  Needs a little work but is in good shape for a bank owned property.  Gambrel style gives it a nice cabin feel, but is is pretty bright on the inside.

Views of both ski slopes and lots of parking.  Listed at $147,500.  A must see for anyone in this price range.

The good ones go quick...

If you are looking for a good deal on a Big Bear property, contact us at infobigbearreo@gmail.com and we can help you find the right one.  In this market it is imperative to have a proactive and knowledgeable agent on your side.  We would appreciate the chance to earn your business. 

 

Homepath Lending Rocks

-Israel Barden

I just wanted to take a minute to tell everybody out there about how great Homepath lending really is. I have sold six properties this year with the Homepath program, and they have all been very easy transactions. For those of you who have never heard of it, Homepath lending is a program offered by Fannie Mae on select bank owned homes in their portfolio. With the utter lack of programs designed to help buyers get into homes with a low down payment, this can be a godsend to buyers.

One of the main benefits of the program is a low down payment. Qualified first time or primary home buyers can get in with as little as 3% down. Second home buyers can get in for only 10% down. Another huge advantage is the fact that Homepath does not require an appraisal on the subject property. With the huge amount of incompetent appraisers blowing deals in our area, this is fantastic. Since appraisals can range anywhere from $300 to $600 dollars, this is a big savings right off the bat.

Homepath borrowers also are not required to pay PMI insurance. If you don’t know what that is, it’s a monthly insurance premium that mortgage holders force homeowners to pay if they put less than 20% down at the time of purchase. This also is a big savings. Which is usually around $100.00 a month. Homepath also will usually contribute towards the buyers closing costs. If the offer is written correctly, that is.

To find out what properties in your area qualify, go to www. homepath.com and type in your information. A list of all the Fannie Mae properties will appear, as well as information as to which ones qualify for the program.  For help with Big Bear properties I recommend Martha McKinley at Guild Mortgage (909) 866-6856 to get you preapproved with a homepath loan. After that, contact Joe or me to get an experienced Realtor in your corner. We both have a great deal of experience with these properties and would love the opportunity to use it for you.

 

Big Bear REO Home of the Week

39195 North Bay

Big Bear Lake, CA 92315

 

 

This home is listed by Tyler Wood of Coldwell Banker The Tim Wood Group in Big Bear Lake. This home is located in the fantastic neighborhood of Boulder Bay. Boulder Bay is a very special area and most homes priced correctly, tend to sell quickly. Joe and I both felt this was the best REO property to come on the market this week.

The home is 1,280 square feet and located on a very nice 6,350 square foot, street to street lot. The main house has four bedrooms and one bathroom. The kitchen has been upgraded with granite counter tops and newer cabinets. The detached garage has been converted from a two car garage into a one car garage with a guest house. The guest house is one bedroom, one bathroom, with a laundry area.

If you would like to schedule a time to view this, or any property in the Big Bear area, please contact The REO Group at infobigbearreo@gmail.com .

Be Prepared, Be Pre-Approved

- Israel Barden

I just wanted to take this opportunity to reiterate a point I have brought up time and time again. If you are planning on buying a home, bank owned or not, your first order of business is to get preapproved. If you do not take the time to complete this essential step, you are setting yourself up for failure. Why go to all the trouble of finding a property, writing it up and getting your offer accepted, only to have your hopes dashed before your eyes? I know I have addressed this before, several times, but I think it is worthwhile to revisit the subject.

Being preapproved gives you instant credibility with a seller. When you present your offer to the seller, accompanied by a preapproval letter, it automatically lets the seller know that you are a buyer to be taken seriously. It also lets the seller know that you have taken the time to make sure you can actually purchase the property. I would never counsel a seller to accept an offer from someone who was not preapproved.

Being preapproved gives you the ability to move quickly when a property you want to buy comes on the market. Currently, in the Big Bear market, there are a great many buyers looking for a great buy. When one comes on the market, there can be many buyers making on offer on it. If you are preapproved and ready to buy, many times you can get in before the property gets noticed and buy it before anybody else has a chance to make a move. If you need to wait a few days to get preapproved, you have lost your advantage and will most likely have to get into a bidding war.

Being preapproved lets you know exactly how much of a house you can purchase. This can save you from wasting time looking at homes you can’t buy. I can’t tell you how many times I have been told by a buyer “ Don’t worry, my credit is excellent and I can buy this house with no problem”, only to find out they actually cannot buy the home because it is out of their price range or they have too high of a debt to income ratio. Knowing your limits is a very valuable thing in looking for a home that is going to be a good fit for you.

Lastly, being preapproved is required to purchase a bank owned property. That’s right. If you are not preapproved, a bank will not even consider your offer. If an offer is not accompanied by the preapproval letter, the asset manager won’t even open it. Since most of the best buys on the market are bank owned homes, it only makes sense to position yourself to be able to purchase one. It takes a little effort, but it will make your home buying experience a much happier one.

If you have any questions or would like to make a time to look at property, please don't hesitate to contact me at izzy@thetimwoodgroup.com

 

Big Bear Bank Owned Homes of the Week 6/8/2010

Our first home is located at 1312 E Country Club in Big Bear City, Ca. It is listed by Robert Parkinson at Parkinson Group Resort Properties. The home is 1,102 square feet and sits on a 5,700 square foot lot on a quiet street on the East side of Big Bear City. The two car garage makes this an especially good deal. Priced at $164,900. For info on this or any property in Big Bear Lake please contact us at infobigbearreo@gmail.com

 

 

Our next home is listed by Tyler Wood at Coldwell Banker The Tim Wood Group in Big Bear Lake. The home is located at 557 Sunset in Sugarloaf and is a 1,120 square foot home on a beautiful 7,125 square foot lot. This home has three bedrooms, one bath and a very nice covered, wrap around porch.

 

 

Video Blog of the Week

Today I wanted to talk a little bit about Fannie Mae properties and how they differ from regular bank owned homes. Fannie Mae's make up a substantial portion of the bank owned listings here in Big Bear Lake, so this should be informative. If you have any questions or would like information on Big Bear real estate, please contact The Big Bear REO Group at infobigbearreo@gmail.com .

 

 

Big Bear REO Home of the Week 5/21/2010

This home located at 1680 Wolf street in Moonridge is listed by Lynn Wheeler of Keller Williams. It is listed at four bedroom's, but is actually five, with three and a half baths. The home is 2,932 square feet, on a 7,216 square foot lot with a two car garage. This Tudor style home is in " like new " condition and was built in 2008. This is the best REO house I have ever seen listed at $599,950.00. I don't see this sitting on the market long.

 

 

If you are interested in seeing this listing, or any listing in Big Bear Lake Ca, please contact us at infobigbearreo@gmail.com . We would love to hear from you.

Big Bear REO Homes of the Week 5/14/2010

Our first home is located at 462 Wagon Wheel in the Sky Valley Ranch subdivision located in east Big Bear City. The property is listed by Carolyn Dalby at Keller Williams. Priced at only $296,900.00, this home feels like it is brand new. It is 1,738 square feet with three bedrooms, two baths and a two car garage. It sits on a 7,200 square foot lot that backs to open acreage.

 

 

Our second cabin is located at 820 Hart in Erwin Lake on the far east side of the valley. This home is listed by Tyler Wood of Coldwell Banker The Tim Wood Group. This cute little cabin is priced at only $79,350.00 and I feel it is the best home in Big Bear in this price range. It is 680 square feet and has two bedrooms and one bath. It sits on a 2,400 square foot lot at the end of a quiet, heavily treed street.

 

 

If you would like to make an appointment to look at these homes, or any homes in Big Bear, please contact us at infobigbearreo@gmail.com .

Big Bear REO Homes of the Week

1032 Heritage Trail

This home is located at 1032 Heritage Trail in The Meadowbrook Estates subdivision and is listed by Carolyn Dalby at Keller Williams. It is 3,288 square feet and has four bedrooms and four bathrooms. At 46,174 square feet,the lot is over an acre in size. The home is in really great shape and seems barely lived in. Even the carpet looks new. Meadowbrook Estates is my favorite neighborhood in Big Bear and is very exclusive. At $689,900.00, this is to good a deal to pass up.

320 Downey

This home is located at 320 Downey in the Shay Meadows area of Big Bear City. This home is 1008 square feet with two bedrooms and two bathrooms. It has a nice great room and new carpet. It also has a great wrap around front porch and vinyl siding. The best part of the home is the 7,200 square foot lot that is nicely treed in a good location. At $154,500.00, this is a very good price for this home.

If you would like to make an appointment to see these homes or any home in the Big Bear area, please contact us at infobigbearreo@gmail.com .

Big Bear REO Group Vlog 4/30/2010

Hello everybody. In addition to profiling our favorite REO properties every week, Joe and I will also be doing video blogs focused on issues relating to bank owned homes and Big Bear real estate in general. Please don't hesitate to comment with any thoughts or ideas.

 

 

Big Bear REO Video Tours

Welcome to the first installation of a weekly video blog we will be starting this week. 

If you are in the market for a bank owned property in the Big Bear Valley you need to know just how important it is to act quickly.  With that being said, most buyers visit Big Bear on the weekends to look at property and make offers.  We hope these blogs help buyers get a much better feel for the property than just browsing online listings and multiple, often misleading, pictures. 

Keep in mind with the  Big Bear bank owned inventory hovering around 60 active listings at a time, we will be picking listings to spotlight that we believe in.  Whether it is the price, location, quality of home, or a combination of the three, the properties you see on these blogs caught our attention. We look at every listing that hits the market in Big Bear, and are in good position to know which ones are special.

If you have any suggestions or questions feel free to contact us at infobigbearreo@gmail.com .  We welcome any and all feedback.

Thanks and here are the first two properties.

843 Edgemoor

 
Charming cabin on large lot, close to National Forest, Lake and Village.  Priced well and lots of potential.  Click here to see location.

 

41757 Brownie

 
Upgraded-log style cabin near Snow Summit Ski Resort.  Garage, landscaped yard and very clean on the inside with granite counter tops and other upgrades.  Click here to see location.

 

 

 

Big Bear Short Sale Reevaluation

-Israel Barden 

I have always been taught that it takes a real man to admit when he is wrong. Or, in the case of short sales, at least partly wrong. Anyone who has been reading my blog for any length of time knows that I have never been much of a fan of short sales. In fact I have written on many occasions that the only thing a short sale does is cost you your clients. Recent events have led me to reevaluate my position.

The market in Big Bear is red hot at the moment. Just about every bank owned home that comes on the market is receiving multiple offers and selling for substantially over the list price. The competition is fierce and if a buyer is not very aggressive, their chance of getting the deal is not very high. In the current climate, if you are not ready to go at least ten percent over list price, it may not even be worth the effort to put in an offer. After losing out on several deals, I was forced to look at my strategy for buyers who are not interested in getting into a price war, but are still serious buyers. In short, I started to take short sales more seriously. Believe it or not, I have been having success.

In many cases, short sales are just as good of deals as bank owned homes. They just take longer to get done, up to three times as long in many cases. The question is, would you rather be patient and get a great buy or be impatient and end up with nothing? For buyers who can wait, short sales can be a very good deal. For one, because they are notoriously difficult, there usually is not even close to the amount of interest that a bank owned home generates. If you make a good offer, chances are you will get it with no competition. Then the waiting begins.

There are a few things short sale buyers need to keep in mind. Short sale sellers are able to sell their homes for less than they owe because they can prove a financial hardship. This means they have proven to the bank that they cannot afford to pay their mortgage. This means that there probably is not going to be any money to pay for any sort of repairs. If you decide to buy a short sale home, be prepared to buy it “as is “, with no repairs of any kind being done. Also, in many cases, the seller will not agree to pay for the section 1 termite repairs. Don’t expect a home warranty either. Basically, be happy with the great price you are getting.

The chance of a short sale succeeding depends a great deal upon the listing agent and how competent they are in dealing with these transactions. If the listing agent is a full time professional Realtor with a ton of experience, the odds are in your favor. If the listing agent is a full time housewife who dabbles in real estate on the weekends, the odds are very poor. This is where my expertise comes into play. I can tell you whether a short sale has any kind of chance of being successful and I know how to structure an offer to make sure you are in a good position entering the deal.

In conclusion, bank owned homes and short sales are both great options for getting a good buy on a home in Big Bear. It is really just a matter of preference and what kind of buyer you are. No matter what the case, I can get the job done for you. Please feel free to contact me with any questions or to schedule a time to view property. Izzy@thetimwoodgroup.com or 909-273-8980.

Underpriced Big Bear Bank Owned Cabins

Two under-priced bank owned listings hit the market this week.  Both are in nice areas of Big Bear Lake and close to the lake.  I expect both properties to receive multiple offers and both will most likely sell over full price.  If you are looking for a good deal on a cabin in Big Bear, make sure you use the bank owned expert buyer's agents from Big Bear REO.

41213 PARK AVE.-across the street from the lake and Meadow park, corner lot and lots of potential

LIST PRICE $119,850

836 IRIS DR.-Near National Forest and lake, large lot, charming older cabin with a lot of character

LIST PRICE $120,000 

Contact us if you would like more info on these properties or any other Big Bear properties.  Or contact us if you want to get a head start on the next deals before they are listed. 
 
 

Big Bear Bank Owned Property Of The Week

-Israel Barden

 http://439edgemoor This is my favorite bank owned listing of the week. It is listed by Mark Dolan of Realty Executives and it is located directly across the street from the lake and has some pretty awesome lakeviews. Though it was built in 1940, it has had some recent upgrades and is in relatively good condition. It is 1,330 square feet and sits on a 5,184 square foot lot. Besides being close to the lake, it is also very close to The Village and skiing. For a vacation home, it doesn't get much better than this. At only $257,500, I don't expect this one to last the week. If you would like info on this listing or any other in Big Bear please shoot me an email at izzy.barden@gmail.com or call me at 909-273-8980.

Lowballing REO Properties

-Israel Barden 

Let’s get one thing straight. In most instances, the days of being able to lowball a bank owned property are over. There, I said it and I mean it. You used to be able to attempt it a few years back when there was a glut of properties and no buyers. Things have changed. Inventory is down by 50% and sales are up by 35%. This means there are much fewer houses to choose from and a much larger number of buyers to compete for what is available.

I can’t tell you how many times I have seen buyers lose a property because they refuse to understand this fundamental change in our market.  If you see a house that you think is a great deal, I guarantee there are at least one or two other people who feel the same way. These people are also going to be putting in bids on the home in question. If you put in a low bid, you just took yourself out of the equation. In many cases, the bank will only respond to the offers they feel are the best. Odds are, you will not be given a chance to up your bid. In many instances, your first offer is your best offer. Many listing agents don’t even want to get into all the drama of dealing with multiple offers. If a clean, all cash offer comes in, they will just advise the bank to take it as it is a “ sure thing .”

In many cases, banks are pricing REO’s below value to start a “ price war.” This strategy is very successful. The bank puts a home on the market substantially below value and watches the offers roll in. They then issue a best and final counter to all parties and take the highest offer. Recently, I had an opportunity to see this first hand. A nice home next to open acreage came on the market at $204,000. My clients loved the house, but I knew it was going to garner a large amount of attention. I advised them not to write an offer unless they were willing to go up to at least $230,000 or so. Since they did not want to spend that much on a vacation home, we didn’t write an offer. I saw it closed last week at $255,000. That is just one example of how this system works.

There are a few instances where a lowball strategy can be successful. The most obvious case is where a home is overpriced and sitting on the market. These sellers may be getting tired of waiting and be willing to bend on price. However, you must take into account the fact that the house is overpriced to begin with. Even if you do manage to get a significant price decrease, you are probably only doing a little better than market value. If a home is in really bad shape, and you are handy, you may have a good opportunity to get a deal. Most people are not interested in a home that needs a ton of work and that may present a good chance for you to get a deal.

Keep in mind the fact that these homes are good deals to start with. In most cases, even if you have to go over list price, you are getting a great buy. When you are buying a house for 50% of what was paid for it a few years ago, you have no cause to complain. If you take the time to really put things into perspective, only then can really go about getting a good buy on a bank owned home.

izzy.barden@gmail.com

Big Bear Bank Owned Spotlight $150K and under

• 924 E. Country Club
  LIST PRICE $141,700
  LAST MARKET SALE $246,000 5/16/06
  
  Located in the eastern part of Big Bear City.  Pretty clean but needs a cosmetic face lift.  Detached two car garage is nice.  Property is a little close to Big Bear Blvd. but street is pretty nice with lots of large pine trees.  It would have a much quieter setting if it was located on the other side of the road.  It is easy to get to and only about 10 minutes from the lake and ski resort.
• 609 Rose Hill
  LIST PRICE $129,600
  LAST MARKET SALE  N/A
  
  
  Great setting on this A-frame style home.  Like all A frames, the floor plan is not the greatest however is is not too bad.  The setting is the real focal point of this property it sits next to a seasonal creek and towards a large open area of acreage that may eventually be developed.  Rose Hill is a dead end street that ends at the open acreage.  There are lots of trees and bushes that add to the property's setting.  Very quiet area.  The main negative is that the pavement ends about three houses down the street from this property.  During the winter and spring this means lots of mud and very wet ground.  Obviously this is a fixable problem but it would be up to the owner to take care of.  It might be worth looking into to get this type of setting. 
• 42697 La Cerena
  LIST PRICE $102,900
  LAST MARKET SALE $199,500 7/1/05
  
  Great lower Moonridge location.  Can't get into this area for any less of a price.  Sits on a small lot but at least it is a corner lot.  If you are looking for a small place in a great area, this is the best deal.  Obviously won't work for everyone but would make a great little ski cabin and is less than five minutes to either resort.  Also very close to hikes through the National Forest. 

Big Bear Bank Owned Spotlight

By Joe Pecoraro

• 41572 Park
  LIST PRICE $295,580
  LAST MARKET SALE N/A Refinanced on 2/14/06 for $420,000
  

  
  This is definitely one of the better bank owned properties on the market right now. The location is great, walking distance to the lake and right down the street from Snow Summit Ski Resort but far enough away that it is not affected by it's visitors. It is also walking distance to Meadow Park, Swim Beach and a fishing dock.

  This home has a very large garage and lots of decking, front and back. The floor-plan is unique, I guess you would call it a split level. The vaulted ceilings over the living room and kitchen are impressive. The one downside to this property is it is a little outdated, however with new carpet would be very clean. The outside has some deferred maintenance that would require some care immediately. Mostly paint and a little wood replacement.

  Overall I think this is a pretty good deal for the area and should sell close to if not at (or over) it's list price.

• 42706 Juniper
  LIST PRICE $274,900
  LAST MARKET SALE $404,000 8-04-06   
  
  
    
  

  Like the first property, this cabin is in a great location. The setting is great with a seasonal creek and boulders in the back yard and vacant land adjoining the property. This of course can change if someone builds behind this property. But for now it is a really nice quiet setting with very nice homes around it.

  The house itself has a reverse floor plan, which means the living space and kitchen are upstairs and the bedrooms are down. There is a bathroom upstairs and down. Although the house is clean and the bank has done some work, the place is in some serious need of upgrading. Especially the kitchen. The living room is large and has a back deck coming off a slider. The back deck seemed really relaxing and seemed like it would be a great place to BBQ.

  I believe this house is a little overpriced at the moment. The neighborhood supports much higher values and I could see someone just wanting to get into this area. I would say this property has a good chance of coming down in price.

• 43496 Primrose
  LIST PRICE $209,000
  LAST MARKET SALE $315,000 10-06-05
  

  
  
  If you have been paying attention to the first two properties there was a common theme, Good locations. Or location, location, location. This property continues that trend with a very clean ski cabin. Located just east of Bear Mountain Ski Resort, although you would never know it (unless they were making snow) because it is such a quiet street.

  The cabin is a full roof gambrel style (barn shaped) with very nice wood ceilings and walls. There is one bedroom and a loft with one full bath. You can enter the house through the kitchen or use the side door off of the deck to enter into the living room. The back deck has a spot for a jacuzzi (there is one there right now but not sure if it works) and plenty of room to hang out with the gang.

  If you like Moonridge or want to be close to the ski resort, this is a decent price. I personally think it is a little high and I know that the bank has already received at least one offer and not come to terms with the potential buyers. This leads me to believe that there is not much room in the current price. It has been on the market for almost 100 days and only been reduced in price by $6k. You never know, maybe the bank is getting more motivated.

If you would like to see other bank owned properties currently on the market, click here. Or email me directly at joe@thetimwoodgroup.com. I would be happy to give you info on any property on the market.

Big Bear Lake Market Snapshot

-Israel Barden

Hello everybody. Thank you very much for taking the time to read The Big Bear REO blog. March is finally here and winter is on it's last legs. Thank goodness. I like snow as much as the next guy but, this year was ridiculous. I am a lifetime resident and I can never recall getting five feet of snow in a single storm. It looks like we may still get a couple of snow storms before it is all over, but hopefully they will not be as prodigious as the last few. I was looking at the numbers for the year so far, and thought it might be something our readers would be interested in.

Currently we only have 658 properties listed on The Big Bear MLS. I say " only " because I have seen the number up around 1200 within the last couple of years. This means there are only half as many properties for sale as there were in 2007. While this is still a buyers market, it is also good news for sellers. If you are astute enough to price your property to sell, the odd's are in your favor that you will attract quite a few motivated buyers. If you insist on ignoring reality and pricing your home at an inflated price, I'm afraid it will be the same old story. Yes, your home will sit and sit while prices decline.

Of the 658 homes listed for sale, 60 of them are bank owned properties, with another 60 listed as short sales. This means short sales and bank owned properties make us less than 25% of the homes for sale in our market. For folks in the market for a distressed property, this is a telling statistic. Because so many buyers are looking for REO's, the competition is fierce. Don't be surprised if there are four or five offers on the house you want to buy.

Year to date, so far, we have had 130 properties close escrow. Since most escrows are taking around 45 days, this number is actually better than it sounds. Of this number, 63 were bank owned properties and 12 were short sales. Even though bank owned homes make up less than 25% percent of the listings, they are accounting for over half of the sales. Can you say " Driving the market?"

Currently we have 167 properties listed as pending, contingent, or active contingent. Basically, these properties have accepted contracts and have a good chance to close. Of the 167 properties under contract, 67 of them are short sales and 53 of them are bank owned. This is a huge percentage. This statistic really shows you just how much bank owned homes and short sales are affecting what is happening. Because short sales take an average of three months to close, this skews the stats a little bit. Most of the pending short sales have most likely been pending since before the first of the year.

Hopefully this has helped to clarify what is going on at the current time. According to everything I have been reading, foreclosures are going to be driving the market for the foreseeable future. If you are in the market for a property in Big Bear, it is essential that you find somebody who understands the market and is experienced in bank owned and short sale purchases. I would only be too happy to offer my services. If you would like to discuss real estate in Big Bear or have any question, please do not hesitate to contact me at 909-273-8980 or izzy.barden@gmail.com

 

Five Best Big Bear Bank Owned Properties Under $200K as of 2/20/10

by Joe Pecoraro

Here are the top five bank owned properties under $200k (AKA REOs) currently on the market in the Big Bear valley.  The properties are listed in order of listing price.  Also remember there are more and more bank owned properties coming on the market every week, so check back for more properties later or request a list of current bank owned properties at info@bigbearreo.com.

• 858 Fir -Newer cabin in very good shape for a bank owned property.  This property feels brand new and has a very functional floor plan.  It is located in the Erwin Lake neighborhood of Big Bear City which is about 10-15 minutes to the lake and ski resorts.  There is no immediate work that needs to be done to the property and it even has washed and dryer hook ups which is rare for a cabin this size and in this price range.

LIST PRICE $88,000    DATE LISTED 1/27/10
ORIGINAL LIST PRICE $88,000
LAST MARKET SALE  11/17/06
LAST SALES PRICE $174,000

• 815 Rainbow-Charming gambrel cabin located in nice area of Big Bear City.  About five minutes to the ski resorts and lake.  This property just came back on the market after a buyer couldn't complete the deal and the bank reduced the price by $10,000.  Older but clean, the cabin could use some upgrades and has the nice woodsy interior that most people love in a mountain cabin.

LIST PRICE $102,500
DATE LISTED 12/9/09
ORIGINAL LIST PRICE $112,500
LAST MARKET SALE 9/18/98 (property was refinanced, last time 6/10/08 for $143,000)
LAST SALES PRICE $60,500

• 42827 Monterey-Moonridge cabin right next to the Bear Mountain shuttle.  Less than a 3 minute drive to Bear Mountain and less than five minutes to the lake.  This cabin was previously listed as a "short sale" before the foreclosure.  It is no listed less than the "short sale" price and still not selling.  In need of some upgrades, especially the kitchen, this cabin has tons of potential and is priced extremely well.  It also has a bonus, game/laundry room.  It is baffling why this cabin is not selling.  Great location, great price and lots of potential.

LIST PRICE $135,000
DATE LISTED 12/3/09
ORIGINAL LIST PRICE $140,000
LAST MARKET SALE 12/16/05
LAST SALES PRICE $279,000   

• 710 Marin -Duplex near The Village.  One of the cabins is already upgraded and has a full time tenant.  The other cabin is in the middle of being remodeled.  This property comps out with just the one cabin that is usable.  Once completed this would be a very good income property with full time or vacation rental potential.  Great investment property.   

LIST PRICE $144,500
DATE LISTED 2/17/10
ORIGINAL LIST PRICE $144,500
LAST MARKET SALE 6/22/01 (property was refinanced, last time 5/9/06 for $228,000)
LAST SALES PRICE $85,000

• 924 E. Country Club -Another property previously listed as a "short sale".  Not many cabins in this price range have a garage and an extra half bathroom.  Cabin is in pretty good shape for a bank owned.  Could use some upgrades but it is ready to be used right away.  Located about 10 minutes to ski resorts and lake.  Nice Big Bear City location.    

LIST PRICE $147,500
DATE LISTED 2/12/10
ORIGINAL LIST PRICE $147,500
LAST MARKET SALE 5/16/06     LAST SALES PRICE $246,000

If you need anymore info on these or any other properties in the Big Bear Area feel free to contact us.  There are over 50 bank owned listings currently on the market.  Contact us for a complete list.

 

 

 

Big Bear Bank Owned Dogfight

-Israel Barden

I have always been told that the key to success is practice. If you are planning on buying a property in Big Bear, you need to practice saying " Yes, I realize I may need to pay 10% over list price." Believe it or not, if you are planning on purchasing a well priced bank owned property, that is most likely what you will have to be prepared to do. With low prices and low interest rates, qualified buyers are coming out of the woodwork. In large numbers.

Every single home, that was a good buy, that I have written up in the last six months has had multiple offers on it. Every single one. Even traditional listings that are priced well are getting swarms of activity. The only way to combat this is too be bold. This is no place for timid buyers who want to " see what happens." There is no reason to make a low offer and see, because I can tell you exactly what will happen. You will waste a great deal of your time and end up on the losing end.

On Thursday a really good deal popped up on Hillendale in Big Bear City. I had clients that the house would be perfect for. I went out and took numerous photos for them and made sure the house was as good a deal as it looked. It was better than it looked. My clients drove up early Saturday morning and loved the place. When we got back to the office I called the listing agent. The home already had three offers, one of which was the listing agent's, and she was expecting more. The house was listed at $204,900 and probably worth around $235,000 or so. We discussed the situation and I told my clients if they were not prepared to go to at least $220,000, not to waste their time. Due to the fact that two other Realtors showed up to show the house while we were there, they had little difficulty believing me. They decided to pass and write up a traditional listing we found in Sugarloaf that was priced at only $149,900. Guess what? The next day the listing agent emailed me to inform me that another offer was on the way in. Arrrgh.

The days of low balling bank owned homes is over. The good ones anyway. I am sure if you find a tear down or a home in a very bad location, you could still negotiate a good percentage off the price. On anything halfway decent, you are in for a fight. The one thing in your favor is most people are willing to step over a dollar to save a dime. However, there always seems to be at least one dog in the fight who is willing to do what it takes to win the battle. You have to be prepared to be bold and make your move at the right time to beat them out. If you know there are other offers, make your first offer full price with no fat. That way they will feel compelled to, at least, give you the option of going higher. If you come in too low, chances are they will counter the best offer and not even respond to you. When you get a best and final counter, give your real best and final. Don't play games like you are negotiating for a persian rug in Morocco. Go in strong and leave them no choice but to accept your offer. If you make a commitment to being aggressive and follow through on it, you have a great chance of being successful in purchasing a great home you really want.

Five Great Bank Owned Properties in Big Bear 12/15/09

Bank owned properties continue to be some of the best bargains on the market in Big Bear.  While the overall inventory is going down,  bank owned listings continue to come on the market at a pretty steady pace.  As of December 15th there are currently 48 available bank owned properties on the market in the Bear Valley MLS.  Here is a list of the top five in all different price ranges.

815 Rainbow-If you are looking for an affordable little ski cabin or mountain getaway, this is a must see.  Located in a nice part of Big Bear City this little place is priced pretty well and has lots of potential.  The ski slopes and lake are only about five minutes from this charming little cabin.

LIST PRICE $112,500  2 bedroom 1 bath 896 SF

616 Kean-The true definition of a mountain cabin.  Great setting, nice deck to bbq on and lots of trees around.  This place needs some upgrading but the basics are already there.  Large living room with open kitchen, open beam ceiling, and plenty of sleeping room for the whole gang.  Cabin is located at the end of a very quiet street with no through traffic. 

LIST PRICE $185,300  4 bedroom 1 bath 1440 SF

1629 E. Big Bear Blvd-Great horse property in beautiful Shay Meadows.  Close to 1/2 an acre and newer construction.  Property has many upgrades including granite counter tops and a nice floor-plan.  One of the "best price per square foot" on the market.  Would make a very nice full time home or summer getaway for someone that needs space.

LIST PRICE $359,900  3 bedroom 2.5 bath 2385 SF

42438 Bear Loop-Beautiful log style home in the Bear Loop neighborhood of Big Bear City.  Easily on of the nicest neighborhoods in the Valley.  This property has never been lived in and has some very nice features.  It just came back on the market and may not last.  Close to the lake and National Forest.

LIST PRICE $559,900  5 bedroom 3.5 bath 2933 SF

1234 Bruin Trail-Very clean Fawnskin bank owned cabin with a very secluded and quiet setting.  Plenty of space on the decks to take in nature and the views.  If you want to get into the mountains but away from the crowds, add this property to your list.

LIST PRICE $294,000  3 bedroom 2 bath 1300 SF

If you have any questions about any of these properties or want a complete list of Big Bear Bank owned properties, please contact us and we would be happy to help.

joe@thetimwoodgroup.com

Only Fools Rush In

 

Have you heard the old saying “Only fools rush in? “ In real estate, this can be doubly true. In today’s society, we are used to instant gratification. When we want something we don’t even have to leave the comfort of our homes. We just go to the website advertising the thing we want, click on the item, provide our credit card information and it arrives on our doorstep a few days later. With this mentality, it is no surprise that some home buyers in today’s market expect the same kind of results. They expect to look at a few house’s, find the perfect one, put in an offer and have it accepted all in the same day. Unfortunately, it rarely happens that smoothly. Many different scenarios often come into play that can derail even the most carefully laid plans. And even if it is possible, I wouldn’t recommend it. Let me tell you why.

First off, it is impossible to get a really solid grasp of the market with only a few hours of viewing time under your belt. To truly understand property values in the area you desire, I feel you need to look around at least a couple of times. Impulse buys seldom turn out well. In fact, if I were to look closely at all my deals that failed to come together, I strongly suspect that most of them were homes I wrote up with clients who were buying on the spur of the moment. If you aren’t completely sure of the market and what is available, doubt will probably creep in and make you second guess your decision. I am not saying it is impossible, I have many clients who bought after one day, but it heightens the possibility of failure.

Impulse buys also encounter difficulties because the buyer many times has not taken all the steps to insure that they actually are able to buy a home. I can’t tell you how many times I have heard “Oh, this won’t be any problem. I have excellent credit and make plenty of money “only to find out the buyer in question actually does not qualify for a loan. Or, if they do qualify, it is not at terms they find acceptable. There are a myriad of fees and taxes that many buyers do not take into account before they decide to make a purchase, especially if they require financing. It can be a very expensive proposition to procure a loan. When you add mortgage insurance, tax impounds , title fees and insurance, etc into the mix, it can be quite a bit more than an unprepared buyer expects to pay.

Lastly, a buyer who is patient has a much better chance of actually finding and buying a home they will truly love. An educated buyer will know the perfect house when they finally find it. They will know it is a great deal and they will know what they have to do in order to buy it. An educated buyer will know when it is a bad idea to try to lowball a home. They will be smart enough to offer an amount the seller will take. Because they have been patient, they will be pre-approved and have all their financing in place to be able to write a strong offer. Also, they will have had time to build a good relationship with their Realtor, and will trust and listen to his advice. There is nothing worse than losing a deal because a buyer who has no clue about the market, refuses to listen to reason and makes bad choices that torpedo their chances to buy a home that they really love. If you are in the market for a property, take some time to learn the market. Look at some of the various internet sites that allow you to see the listings in the area. Talk to a lender and find out what you can afford. Take the time to research local Realtors and contact one you feel comfortable with. Do not use an out of area Realtor unless you want to deal with the frustrations of working with somebody who knows very little about the area and won’t know a good buy from a bad buy. Nothing beats local knowledge. Listen to the Realtor you have entrusted with your purchase. Looking at the internet for a few days will not make you more savvy than somebody who deals with the market every day for a living.  If you listen to this advice, you will know with a certainty when you find the place you really want to buy. Then, buy it and enjoy the feeling of a job well done.

REO Urban Legends

It seems like everybody has a story about a cousin or brother in law or long lost Uncle who offered half of the asking price on a foreclosure and got it. It has almost reached urban legend status in this market. I have bad news for people that believe this story. There are no giant alligators in the sewer. If you say Bloody Mary three times in front of a mirror, she will not appear. Even more terrifying, there are no bank owned properties in Big Bear that you can buy for half of the list price.

As a matter of fact, writing lowball offers is a sure way of losing out on a property you might really like. When an asset manager sees an offer that is over 10-15% low, they automatically put that offer into the crank file. Usually, they don't even bother countering an offer that low. When they do counter, it is usually for $100.00 off of the listing price. The only thing that happens when you write a really low offer is you lose all your credibility. Instead of coming off as a serious, viable buyer who is looking for a good deal, you come off as a shyster trying pick the bones of an unfortunate soul.

When a bank prices an REO property, they don't just pick a random number. They don't price it off of what the remaining loan is. They actually have Realtors give them price opinions on current market value. Then, they price the home at a fair market price. Usually, this a very good deal. Just because there is only $50,000 owed on $200,000 property, does not mean the bank will take $100,000 for it. They will sell you the property for a good, fair price. If you come in at $125,000, they will not even acknowledge you. If you come in at $150,000, they will counter at $199,000. If you come in at $175,000, they will probably give you a real counter to work with.

I am not saying that it is impossible to get a great deal. It is highly possible. You just have to reevaluate what a great deal is. If a home last sold for $350,000, and you buy it for $250,000, you are getting a great deal. You just need to be realistic. Plus, while you are dickering around with lowball offers, the odds are very good that someone who understands what is going on will come in with a respectable offer, and you will lose out. If you think it is a good deal, it is certain that somebody else will too. I feel the best strategy is too give the bank the opportunity to say " Yes."

Big Bear Short Sale Update

- Israel Barden

I know that I have written several blogs about why I really don't like doing short sale transactions. In my experience, a vast majority of the time, the only thing a short sale does is cost you your clients. They have a very small sucess rate, and the headaches involved can frustrate even the most patient buyer. The one I am involved in right now is a perfect example.

My clients and I first wrote this property up over five months ago. That's right. Five long months from the day we submitted the offer until the day we opened escrow. The only reason we made it this far was because nothing else came on the market that my clients liked as much as this house. Since I sit directly behind the listing agent, I had the opportunity to see how incompetent the bank really can be in these situations. For one, they switched asset managers on us at least four times. To make matters worse, the previous asset managers left no notes of any kind for the new asset manager, basically forcing everything to start all over again. Three months into it, the bank sent out a letter to the seller offering to modify her loan. They didn't bother to mention that even though the seller didn't do it, it forced everything to go back to square one. Again.

Finally, once the offer was accepted, things didn't get much better. The bank decided that not only would they not pay one penny towards termite work or repairs of any kind, they also would not pay the back taxes owed on the house. They basically told the listing agent that either my buyers had to pay them or he and I would have to pay them out of our comissions. Since the home is only selling for $150,000, $750.00 a piece is a big chunk out of our money. I know it may sound strange but, I work to make money to support my family.

Since this deal has yet to close, I can not even call it a sucessful transaction. Any number of things can derail a short sale, and since the bank doesn't seem to care, they often do. The best I can hope to do as the buyers agent is to stay on top of everything, be a pest to everyone else involved, and hope the bank doesn't do something incredibly stupid to wreck it for everyone. Thanks for reading my vent:) If you are considering buying a short sale, prepare to be very patient. Enter a zen like state and hopefully five or six months later, you will awaken to the home of your dreams.

Big Bear Bank Owned Listing

This bank owned property just came on the market. It is listed by Tyler Wood of Coldwell Banker The Tim Wood Group in Big Bear Lake Ca. What I really like about this house, besides the price, is it's location. It is only two houses away from The National Forest and that is always a good thing. The cabin needs a little upgrading, but overall is in good shape. It is 816 square feet with two bedrooms and one bathroom. It was built in 1980 and sits on a 3,750 square foot lot. At only $128,800, this one won't stick around for long. If you are interested in this listing, bank owned homes, or any listing at all, please give me the opportunity to be your Realtor of choice. I can be reached at izzy@thetimwoodgroup.com or by phone at 909-273-8980 

Big Bear Lake Lakefront Sale

- Israel Barden

I just closed escrow on this lakefront home located at 39597 Lake Drive. The home is a Tudor Style construction located in The Gilner Point area of Big Bear Lake. The home is 3,698 square feet and sits on a 12,810 square foot lot. This is my third lakefront sale so far this year. If you are looking to buy a lakefront home, or just a little cabin in the woods, I would appreciate the opportunity to be of service. Feel free to contact me anytime at izzy@thetimwoodgroup.com or call me at 909-273-8980. 

Bank Owned Furnishings

-Israel Barden

When it comes to agents that list bank owned properties, they seem to fall into two distinct categories. The first group takes their time and makes sure the house is completely ready to be sold. These agents make sure that the house and yard are clean and presentable. They also post the 18 day notice for the foreclosed owner to remove their belongings. Then, after the 18 days are up, they have everything removed to storage, leaving the house in great shape to be sold.

The other group of agents don't bother with all those steps. They don't wait for the home to be cleaned or, sometimes, even for the tenants to be evicted. They just throw their sign up and put it on the MLS. Because of this, the home is often still fully furnished when it is being shown to prospective clients. This leads to nothing but problems.

Because people have a tendency to covet what they see, furnishings left in REO listings lead to nothing but trouble. You can tell your buyer 100 times that none of the furnishings are going to  be included with the sale, and they will still dwell on it and bring it up. Often. Questions about what happens to the furnishings and why they just won't leave them. " Maybe you can call the listing agent and tell him not to do the clean out" is something you will probably hear at least once. Some buyers will go crazy for the mirror over the mantle and insist it must be a fixture. When you tell them it is not, they will insist that you call the listing agent and offer money to buy it. It is not the listing agents property to sell. It is not the banks property to sell.

For all agents out there, be very firm from the start regarding the furnishings in a bank owned home. If you don't, it will cause nothing but problems. You need to quench the desire for that nice couch from minute one or your buyer may start obsessing over ways they can acquire it. Buyers, you need to realize that there is no way you are going to be able to get the furnishings. The bank may be taking the furnishings and throwing them on an enormous bonfire, as you suspect. They still won't give them to you. They may languish in a dust filled storage bin for 20 years until they deteriorate. You still can't have them. Be happy with the great deal you got on the house and let the rest go. Believe me, it's not worth the mental anguish.

Big Bear Lake Bank Owned Info

-Israel Barden

Hi everybody. Thanks for reading The Big Bear Reo Blog. Joe and I really appreciate all your feedback. For today, I thought I would endeavor to give you an idea of how bank owned homes are really driving the market in Big Bear Lake. The best way to do this is to give you some cold, hard numbers.

Currently, there are 863 residential listings on The Big Bear Lake MLS. Of these 863 listings, only 62 of them are bank owned properties. You read that right. There are only 62 bank owned listings today, on the Big Bear MLS. That means bank owned listings make up less than 10% of the market . Compared to most areas of Southern California, that is a substantially lesser number.

Now comes the really important number. What is the percentage of bank owned homes that are currently in escrow versus traditional listings. The answer is not all that surprising. Currently, there are 203 homes listed as pending, or in escrow, in the Big Bear MLS. Of those 203 homes, 83 of them are bank owned properties. So, while bank owned properties are making up less than 10% of the listings, they are accounting for almost 50% of the sales. Can you say " Driving the market ?"

Because you can't really make a solid determination based on one months worth of information, let's expand our numbers to include the whole year. Year to date in Big Bear Lake Ca, there have been 664 homes that have closed escrow. Of that number, 294 of the homes sold were bank owned properties.This means that almost 50% of the sales this year have been bank owned homes. This just goes to show you that, for the most part, bank owned properties are far and away the best deals on the market. Joe and I both pride ourselves on being experts in not only inventory knowledge, but also our ability to successfully close bank owned transactions. If you want a great, experienced bank owned expert in your corner, give me a call at 909-273-8980 or send me an email to izzy@thetimwoodgroup.com.

Short Sale? Be Careful.

I just wanted to give out a word of warning to anybody considering buying a short sale property. The house is a short sale because the owner is in financial straits. People in this situation can be a little unpredictable and do things you wouldn't normally have to be that concerned about. Things like stripping the house to the bone for instance.

A few days ago I wrote an offer on a short sale with some clients. It was a good deal on a really clean home in a nice area. Luckily, as I always do, I wrote into the offer that all appliances and fixtures were to be included in the purchase price. Our offer was accepted and I was getting ready to open escrow. Then, the listing agent called me and told me that the seller was going to take all the appliances and fixtures with him but we could purchase them outside of escrow for $2,500.00 . When I told her that we considered the appliances fixtures and would not purchase the house without them, she said she understood and would try to get the seller to come around. He didn't. It soon became apparent that he was probably going to strip everything he could take out of the house and then try to " Sell " it back to my clients outside of escrow in an effort to defraud the bank.

Needless to say, we refused and backed out of the deal. The seller basically bought the house, mortgaged it to the hilt, defaulted on his commitment to the lender, and then wanted to steal even more money from them. I don't know about you, but I found this unacceptable. I can only hope that the bank catches wind of this and puts a stop to it. I wouldn't be surprised if the window coverings, lighting, and bathroom vanities all end up in the sellers garage. Anybody who deals with somebody like this really needs to be on their toes and write everything they expect to come with the house into the contract. Also, make sure you do your walkthrough at the last possible moment. Don't give a guy like this the opportunity to take advantage of you.

- Israel barden